Updated almost 10 years ago on . Most recent reply
New Apartment Deal
Hi All, Contemplating making an offer on a new 170-unit apartment building. Below are the vitals, would appreciate any thoughts.
Purchase Price: $2,350,000+/-
Units: 170 (All 1000 SF 1/2/3 BR)
Current Monthly Rent: $76,500/mo
Annual Rent: $918,000
Vacancy: 33%
Effective Gross Income: $605,880
Taxes: $21,000
Insurance: $15,000
Management: 5% (will be partially self managed) $30000
Utilities: $6,000 (only common area electric and electric heat, all other separately metered)
Repairs/Maint.: $50000 (I own a construction company)
Marketing/Promotion: $1,500
Trash: $3,000
Supplies: $5,000
Water Testing: $3,000
Misc: $1,000
Total Expenses: $145,000
NOI: $460,880
Cap Rate: ~18%
Property is in overall good condition but could use some upgrading. Pending inspection there appears to be little to no immediate deferred maintenance. The area is decent, but most likely not going to experience significant growth. This would be a long term hold for cash flow and would be a stepping stone from smaller multi's.